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Article: This Wholesaler No Longer a Wallflower.
- Article from:
- American Banker
- Article date:
- November 2, 2009
- Author:
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Marissa Fajt
These are the days Beal Financial Corp. was waiting for.
The Plano, Tex., wholesale banking company specializes in buying loans from other banks. But from February 2004 to August 2007, it made no purchases and originated just one loan.
Beal's portfolio ran off, leaving it swimming in capital. By mid-2007, the company's two banks combined had a total risk-based capital ratio of 88.05% - nearly nine times the cushion regulators expect healthy institutions to hold.
"We knew there was going to be an opportunity to buy," Jacob Cherner, Beal's top loan-servicing executive, said in an interview last week. "We just didn't ...